Chapter 9

Life Sciences

U.S. Real Estate Market Outlook Midyear Review 2026

2 Minute Read

Explore Local Market Outlooks

2 Minute Read

Explore Local Market Outlooks

The life sciences lab/R&D market is poised to benefit from strengthening demand drivers in 2026, helping to lower the overall vacancy rate. Job growth in the biotechnology R&D industry surged to its strongest pace in nearly three years in April and more life sciences IPOs have been made year-to-date in four years.
Net absorption is forecast to increase in H2 2026, but will remain insufficient to materially reduce vacancy from historically high levels.
2026 completions of lab/R&D space will be the lowest in 10 years (3 million sq. ft.), helping stabilize the balance of supply and demand. Since mid-2023, lab/R&D construction activity has declined by 88% to 4.7 million sq. ft. currently, the lowest total since 2017.
Average lab/R&D asking rents will continue to decline in 2026 as occupiers have an abundance of available space options.

Source: CBRE Research, August 2026.

Demand for life sciences lab/R&D space is expected to lower the overall vacancy rate by 40 bps to 22.5%. This improvement will be driven by a more robust labor market and capital markets environment.
Net absorption is expected to accelerate in H2 and make the annual total strongly positive for the first time in three years.
Average lab/R&D asking rent will decline more rapidly than our original forecast, based on weaker demand in the first half of the year.

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